It is worth noting that buying an NFT won’t grant you copyright on any digital assets and can be copied ad infinitum.

So, all you get is a link to where the artwork is hosted. When that link goes offline, the digital asset vanished. NFTs are crypto assets, so, they are prone to money laundering. It is even argued that the use of blockchain-based technology, in general, contributes to global warming – as verifying each transaction on blockchain requires a lot of energy.

However, the biggest obstacle in NFT trading is the legal validity of cryptocurrencies in India because, as stated earlier, NFTs are tradeable only in cryptocurrencies.

Cryptocurrencies are not illegal in India, but there are no regulations in place to govern crypto transactions. A matter of concern is also whether India will legalise cryptocurrencies after a Reuters report earlier this year, claimed that India could make crypto transactions illegal.

China, for instance, has just imposed a blanket ban on crypto mining and transactions, Reuters has reported.

Dharmvir Brahmbhatt and Devarsh Shah, students at Gujarat National Law University, say that the legality of NFTs in India is uncertain and adding to the chaos is the belief that trading in NFT is not permitted under the Securities Contract (Regulation) Act, 1956 (“SCRA”).